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Bitcoin Settles Lower on Friday to End an Erratic Week

November 11, 2016 at 18:43 by Yahia Barakah

Bitcoin traded near its pre-election level on Friday, even as the price of the digital currency skyrocketed on Wednesday, as investors felt more confident about Donald Trump in his new position as the US president.

The initial shock from Trump’s victory sent shock waves throughout markets and enabled Bitcoin’s price to soar by about 35 dollars in only 5 hours early on November 9, effectively getting the digital currency near its highest level in 2016. However, the virtual currency was quick to fall again after the speech that Trump gave following his presidency, which soothed some of the fears investors had toward his success in getting to the White House.

Both the US dollar and stocks recovered most to all of their losses after Trump’s speech, which took away Bitcoin’s glamour as a safe haven asset. The virtual currency traded slightly higher than its level on November 8 as Bitcoin traders analyzed the short term prospects of the currency, which continues to appear healthy due to increased adoption of Bitcoin.

One form of Bitcoin’s increased adoption is that it can now be used to buy railway tickets in Switzerland, according to the Swiss Federal Railways, which announced that Bitcoin users can buy tickets using the currency from any of its ticket machines within the country. Switzerland has been one of the friendliest nations toward Bitcoin and is expected to continue its endeavors to support the currency for years to come. One of which is the plans of The Swiss Financial Market Supervisory Authority to clarify the legal state of the digital currency by the end of 2017.

Closer to today, Bitcoin users and traders will have their eyes on the Bitcoin Black Friday event that takes place on November 25. The event, which grew rapidly in popularity over the past 4 years, is expected to reflect the increasing support for the virtual currency between digital merchants. This year’s focus will be on longstanding Bitcoin merchants like Bee Brothers and BitBrew, according to the event’s founder Jon Holmquist.

BTC/USD traded at 715.3 as of 18:21 GMT after starting the day off at 714.5. The pair rose on Wednesday to 739.9, before returning closer to its starting point for the week, which was at 710.2.

If you have any questions and comments on bitcoin today, use the form below to reply.

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